We have an updated report [Version - 2024] available. Kindly sign up to get the sample of the report.
all report title image

Cloud computing is the third party availability to computing resources, server software (physical and virtual), storage systems, configuration files, communication infrastructure, and the all files are organized at a centralized database and managed by a cloud services provider. A third-party company that provides cloud-based system, framework, application, or data storage services is known as a cloud service provider. Cloud computing has significantly changed the way of multiple industries operation by accelerating innovation and increasing the rate of business continuity. Cloud computing is important in connected cars, self-driving cars, shared mobility, deeper customer insights, and digital manufacturing. Vehicles manufactured today are no less than a supercomputer, generating a massive amount of data from the numerous sensors installed on the vehicle to obtain real-time alerts/information about tire pressure, global positioning system (GPS), temperature, and a variety of other factors. This information can be analyzed in the cloud in real time and later used for telematics, infotainment system or vehicle health display, advanced driver assistance system (ADAS), and mobility services. The automotive industry is undergoing a revolutionary change as a result of the advancement of computation and communication technologies such as cloud systems. Individual users and organizations are focusing on cloud computing, which allows them to move their data and services from local to remote cloud servers. Many businesses including Amazon, Google, Microsoft, and Dropbox have released cloud infrastructure services that have attracted millions of users. The cloud is clearly becoming a viable and systemic service to replace traditional local systems of data storage.

Global Automotive Cloud Market - Impact of Coronavirus (Covid-19) Pandemic

Even prior to COVID-19, the automotive industry faced numerous challenges such as deploying technologies in vehicles. In many markets, the market rate has fallen. Massive investments in electrification, self-driving cars, were negatively affecting revenue and profitability of automotive market. The coronavirus pandemic increased those difficulties into a crisis. Global vehicle sales have stopped, manufacturing plants have been closed, and many supply chains have come to a halt. According to an IBM report published in 2020, total vehicle sales in China fell by 80% in February 2020.The report also stated that in March 2020, factory closures in Europe resulted in production losses of over 1.9 million vehicles, affecting 1.1 million jobs. Global supply chains are being hampered by supplier shutdowns, border closures, and logistics service providers has reduced operations. The crisis has cause a huge impact on automakers to generate cash by cutting costs and increasing productivity across the entire value chain. Automobile manufacturers require to increase the investments in smarter mobility. For instance, emerging technologies such as cloud systems, artificial intelligence (AI) and 5G telecommunications should be integrated into vehicles at a higher range. These advanced technologies such as cloud, 5G, and IoT (Internet of Things) are deployed in vehicles, which is not only beneficial for customers but also for manufacturers. The technologies enhance the customer safety on road, accident alert, climate alert, and others. Moreover, the technologies enhance low operational cost and high efficiency from the manufacturers’ opinion. Thus COVID-19 has positively affected the automotive cloud market growth.

Automotive Cloud Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 17.22 Bn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 18.45% 2027 Value Projection: US$ 66.73 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, and Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, South Africa, and Rest of Middle East and Africa
Segments covered:
  • By Vehicle Type: Passenger Vehicles, Commercial Vehicles
  • By Propulsion Type: IC Engine Vehicle, Electric Vehicles
  • By Deployment Type: Private Cloud, Public Cloud
  • By Application Type: Infotainment Systems, Telematics, Fleet Management, OTA (Over the air) Systems, ADAS (Advanced driver-assistance systems), Others
Companies covered:

Airbiquity, Amazon, Bosch, CloudMade, Connexion, Continental, Denso, Ericsson AB, Harman, Intellias, LG Electronics, Microsoft, Sierra Wireless, Telenav, and Verizon

Growth Drivers:
  • Increasing demand for IoT and 5G communication for vehicle connectivity
  • Rise in adoption for connected vehicles
  • Changing consumer inclination towards advanced vehicle applications
Restraints & Challenges:
  • Rising threats of cyber attacks 

Figure 1. Global Automotive Cloud Market Share (%), by Region, 2028

AUTOMOTIVE CLOUD MARKET

To learn more about this report, request a free sample copy

North America is expected to witness a significant growth over the forecast period, owing to rising adoption of cloud in vehicles.

The automotive industry is on the verge of massive transformation. Customers have new expectations about purchasing and owning processes of products, and customers get attracted  on businesses that develops new innovative products rapidly. This requires a radical shift in how auto manufacturers frame, develop, and offer products and services, interact with customers and collaborate with governments to build new infrastructure in advanced technologies. The concern of automobile manufacturers is how to move rapidly, while maintaining a sustainable business model, in order to make the investments in automotive market. Cloud computing paves the way for the automotive industry to move rapidly and build a sustainable business model for the upcoming years. North America is the leading region in the automotive cloud market. For instance, Seattle, U.S., is the center of cloud innovation and is capturing an increasing number of mobility companies such as Mercedes, GM Cruise, Uber, Lyft, Grab, and others. Microsoft and Amazon are also actively promoting automotive cloud market, and the companies have announced a number of strategic alliances with BMW, Volkswagen, Daimler, Renault Nissan, and others. For instance, Volkswagen Group of America, Inc. based in the U.S, an automobile company announced a partnership with Microsoft in 2018 to expand the development of Volkswagen Automotive Cloud, or VW.AC, one of the largest dedicated automotive industry clouds. VW.AC is aimed to provide a smart and interoperable foundation for connected vehicles, handling data from millions of connected vehicles per day with the objective of attaining connected experiences of customers.

Figure 2. Global Automotive Cloud Market Share (%), by Vehicle Type, 2028

AUTOMOTIVE CLOUD MARKET

To learn more about this report, request a free sample copy

On the basis of vehicle type, the market is segmented into passenger vehicles and commercial vehicles. Passenger vehicles is expected to reach a market share of 63% by 2028, exhibiting a CAGR of 19.15% between 2021 and 2028.

Frequently Asked Questions

The technologies that are reshaping the business global automotive cloud market include advanced driver assist systems, automatic emergency braking, connected mobile apps/digital key, teen driver technology, exit warning to protect cyclists, and others.

The key players operating in the market include Airbiquity, Amazon, Bosch, CloudMade, Connexion, Continental, Denso, Ericsson AB, Harman, Intellias, LG Electronics, Microsoft, Sierra Wireless, Telenav, and Verizon.

The interoperability of blockchain in the cloud, increased demand for ride-sharing services and autonomous vehicles, shifting from semi-autonomous vehicles to completely autonomous vehicles are some of the factors influencing growth and development of the market.

The market was valued at US$ 17.22 Bn in 2020.

Rising threats of cyber attacks are factors hindering growth of the market.

View Our Licence Options

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Customize Now

Want to Buy a Report but have a Limited Budget?

We help clients to procure the report or sections of the report at their budgeted price. Kindly click on the below to avail

Request Discount
Logo

Reliability and Reputation

ESOMAR
DUNS Registered
Clutch
DMCA Protected

9001:2015

Reliability and Reputation

27001:2022

Reliability and Reputation

EXISTING CLIENTELE

Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients
trusted clients logo